Question

g ____________________________ the income tax would be counter-cyclical fiscal policy if the economy were _________________________.Group of answer choicesRaising; at potential incomeRaising; below potential incomeRaising; above potential incomeReducing; above potential income

Answer 1

Answer:

Raising; above potential income

Explanation:

• The courter policy refers to the strategy of the government to take control over the recession by the use of fiscal measures and thus works to stabilize the economy and thus increase public taxes and reduces public expenditure during the recession.